Migros Ticaret A.Ş.

2020 1Q Financial Results

Covid-19 Impact

Sales

Market Share Evolution

Expansion

Financial Overview

Management Overview

Financial Results

Contents

3

Covid-19 Measures

1.5 metersSocial distancing

Encouraging the use of contactless cards

Sanitizer dispensers in the store

entrance – checkouts

& online distribution

vehicles

All employeesstrictly enforcing

hygiene routines

Sanitization of working areas 5 times a day

• Shopping carts

• Shopping baskets • POS terminals • Checkouts

Limitation on # of customers

(1 person / 10 m²)

4

Covid-19 Impacts on Physical Stores

Shift OptimizationCustomer Traffic Basket Size Temporarily

Closed StoresService Hours

Limitations

Malls:

12pm - 8pm

Stores:

9am - 9pm

69

33 in malls

5

Online Business After Covid-19

# of

Customers

Online Orders Online Orders # of Online

Service Stores

x4

60+

Aged Customers

x4 x3x290%

6

Micro fullfilment: 17(mini-darkstore)

Relaunching Click & Collect

Phone ordering

• 408 stores from 193

+4,000 employees

Call center agents x4 Darkstore expansion: 10

from 3

from 2

Channel

Diversification

Expansion

• 76 cities from 58

Chat-bot ordering

Personnel

Online Business After Covid-19

Apr ’20 vs Dec ’19

Picking automation

7

76 cities 4 cities 7 cities Istanbul 81 cities

+30,000 SKU

292 districts

%53 Same day delivery

+2,000 SKU

52 districts

Delivery within 30 mins

+13,000 SKU

55 districts

Direct from farm to consumers

+2,300 SKU

Available for courier

FMCG Focus

Online Service Channels

8

Cash flow generation

Challenges

Inventory turnoverCovid-19 costs

Foreign exchange losses

Improvements

Sales Turnover

Support to small enterprises

• Home consumption

• Consumers stocking up

+ +

Covid-19 Impact on Business & Financials

9

Sales – 1Q 2020

4,923

6,433

1Q 2019 1Q 2020

Sales 1Q 2020 (TL million)

30.7%

18,717

23,191

2018 2019

Sales 2019 (TL million)

23.9%

Strong growth;

Online business

Basic food categories

Cleaning products

F&V, meat, delicatessen

10

Market Share Evolution

Migros FMCG Market Share Evolution (%)

8.08.8

16.617.0

0

2

4

6

8

10

12

14

16

18

1Q 2019 1Q 2020 1Q 2019 1Q 2020

Total FMCG Modern FMCG

80 bps

40 bps

Source: Nielsen

Note: FMCG: Fast Moving Consumer Goods, Modern and total FMCG market include all food-retail formats

2,100

2,231

1Q 2019 1Q 2020

11

Expansion

Number of Stores (Total)

1,501

1,541

1Q 2019 1Q 2020

Sales Area (K sqm)

151

350

1Q 2019 1Q 2020

Online Service Stores(Total)

+131

2.6%

62 new stores in 4M’20

+199

215 new online service stores in 4M‘20

2.6% 2.6% 1.5%

12

CAPEX (TL million)

399

488

341~400

2017 2018 2019 2020E

42

61

1Q 2019 1Q 2020

Expansion continues despite pandemic conditions

0.9%

% of Sales % of Sales

0.9%

13

Consolidated Gross Profit (TL million) – 1Q 2020

27.5% 26.8%

1,339

1,698

1Q 2019 1Q 2020

Gross Profit

27.2% 26.4%

[w/o IFRS 16]

1,285

1,772

1Q 2019 1Q 2020

NormalizedGross Profit*

26.1% 26.8%Margin

Margin

Margin

[w/ IFRS 16]

[w/ IFRS 16]

1,356

1,722

1Q 2019 1Q 2020

Gross Profit

27.0%

26.8%

37.9%

[w/ IFRS 16]

*1Q 2019 Normalized Gross Profit with current (actual) imputed interest rates

14

Consolidated EBITDA (TL million) – 1Q 2020

9.9% 8.9%

314

372

1Q 2019 1Q 2020

EBITDA

6.4% 5.8%

[w/o IFRS 16]

419

571

1Q 2019 1Q 2020

NormalizedEBITDA*

8.5% 8.9%Margin

Margin

Margin

[w/ IFRS 16]

[w/ IFRS 16]

490

571

1Q 2019 1Q 2020

EBITDA

16.7%

18.6%

36.3%

[w/ IFRS 16]

*1Q 2019 Normalized EBITDA with current (actual) imputed interest rates**EBITDA = Operating Profit + Amortization + Employee Termination Benefits + Unused Vacation Provision - Other Income + Other Expenses

Overview

– Deleveraging

– Expectations

(Total TL mn)

Without IFRS 16 With IFRS 16

1Q 2019 1Q 2020 1Q 2019 1Q 2020

Cash & Cash Equivalents 1,632 2,549 1,632 2,549

TL 1,322 1,749 1,322 1,749

EUR 49 111 49 111

Financial Debt 4,762 4,422 7,622¹ 7,520¹

TL 1,508 1,994 4,368 5,093

EUR 515 336* 515 336*

Net Debt 3,130 1,873 5,990 4,971

EBITDA LTM 1,325 1,589 2,028² 2,318

Net Debt / EBITDA LTM 2.4x 1.2x 3.0x 2.1x

161 Includes capitalized costs of lease contracts over their maturity

2 Includes the IFRS 16 LTM rent cost impact which was extrapolated based on 1Q19 rent cost. (TL 175.8 mn x 4 = TL 703.4 mn)

Cash Position & Leverage

*€ 73 mn early down-payment in April 2020

17

Deleveraging

€ 99 mn

2023

611

430

336

263*

2018 2019 1Q 2020 April '20 2020 E

**Net debt / EBITDA ratios [2018: 2.3x, 2019:1.3x, 1Q 2020:1.2x] without IFRS 16

2.3x

1.3x

1.2x

Gross Euro Debt (mn)

<250

*€ 73 mn early down-payment in April 2020

2,819

2,059

1,873

2018 2019 1Q 2020

Total Net Debt (TL mn)

*without IFRS 16

2022

2021

2020

€ 163 mn

€ 0

€ 0

18

* Sales growth expectation based on 4 months actual sales and 8 months budgeted sales for 2020** with IFRS 16 impact

8-8.5%** 120new stores

~TL 400 mn

Sales Growth EBITDA Margin.

Expansion Target CAPEX

maintained maintained maintained

19-21%*

from 16-18%

2020 Guidance (Consolidated)

− Operations

− Sustainability

Appendix - I

20

Migros at a Glance

20

2,231 Stores The only food retailer

listed BIST Sustainability

Index for the

6 years in a row

2019 CDP Grade:

International Operations

in 2 countries

Introduced more than

100 innovations for the

retail market

33,227employees

TL 23billionsales

1,500+suppliers

Best retailer of the

country 16 years in a row

Turkey’s biggest integrated

meat-processing plan

62,000 tons production

capacity

Included BIST Corporate

Governance Index

since 2015

8m loyal households

Money Card

in all 81 cities

66 year

th

CDP Turkey

Climate Leader

21

76%

Supermarkets

17%

Hypermarkets

3%

Macrocenter

1%

Wholesale

3,500 sqm – 9,500 sqm40 sqm - 3,500 sqm 250 sqm – 2,000 sqm

3%

Ramstore

2,052 55 59 20 45

200 sqm – 1,600 sqm 200 sqm – 3,500 sqm

Sales Area Split – 1Q 2020

22

International Operations

North Macedonia◼ 1.3% of consolidated sales

◼ 29 Supermakets

◼ 1 shopping mall in Skopje

◼ Total sales area of 23,621 sqm

◼ Since 2005

Kazakhstan

◼ 1.0% of consolidated sales

◼ 2 hypermarkets, 14 supermarkets

◼ 1 shopping mall in Almaty

◼ Total sales area of 20,885 sqm

◼ Since 1999

23

Store Portfolio

31 March 2019 31 March 2020

# of storesSales area

(th sqm)# of stores

Sales area

(th sqm)

Migros(M, MM,MMM)

1,153 969.4 1,209 1,002.9

Migros Jet 775 152.2 843 171.7

5M 56 284.4 55 268.9

Wholesale 20 11.2 20 11.5

Macrocenter 51 36.6 59 41.0

Domestic Total 2,055 1,453.8 2,186 1,495.9

Ramstores 45 47.1 45 44.5

Grand Total 2,100 1,500.8 2,231 1,540.4

2,052 Supermarkets

55Hypermarkets

59 Macrocenter

45 Ramstore

24

Migros Better Future Plan

Waste management

and circular economy

Preventative

solutions for pollution

Efficient use of

resources

Value added

activities to raise

awareness

Conservation of

biodiversity

Creating shared

value with

stakeholders

Compliance with

human rights and

equal opportunities

Consistent and rapid

flow of product data

Innovative

implementations

Combating climate

change

Environmental impact

assessments before

new operations

Improving life

cycle of products

25

Sustainability

Food Waste

Carbon Footprint

Score: A-

(2018: - 19.5%)

25%Water Consumption

Score: B

(2018: - 1.1%)

5%

Energy Consumption

(2018: - 10.4%)

17%

Gender Equality

23% (in executive management)50%

by 2030:

by 2023:

(Baseline: 18%)

*2019 data hasn’t been independently verified yet. 2018 data calculated based on GHG protocol and verified on the basis of ISO 14064-3 standard.

26

Waste Management & Biodiversity Conservation

Combating Food Waste

Food Donation:

4,029,533 meals

Day-end clearance on perishables:

4,956 tons of food

Fresh Leftovers Donation:

1,896 tons of food

Combating Plastic Waste

Good Agricultural Practices

Plastic bags: 74%

327 tons less plasticon PL products

65% of F&V - GAP certified

100% GAP certified poultry products

317 checkpoints

− Financials

Appendix - II

28

IFRS Consolidated Income Statement Summary – 1Q 2020

(TL million) 1Q 2020 1Q 2019

Net Sales 6,433 4,923

Cost of sales -4,711 -3,567

Gross Profit 1,722 1,356

Operating Expenses -1,414 -1,114

Other Operating Income / (Expense) -71 -100

Operating Profit 237 142

Income / (Expense) from Investment activities -1 -5

Operating Income Before Finance Income / (Expense) 236 138

Financial Income / (Expense) -382 -360

Income/Loss Before Tax From Continuing Operations -146 -222

Tax Income / (Expenses) -33 -1

Deferred Tax Income 43 -8

Net Profit / Loss -136 -231

Net Profit / Loss - Non-controlling interest 0 0

Net Profit / Loss - Equity holders of parent -136 -231

EBITDA (with IFRS 16 impact) 571 490

EBITDA 372 314

EBITDAR 671 556

29

IFRS Consolidated Balance Sheet Summary – 1Q 2020

(TL million) 1Q 2020 2019

Current Assets 5,889 5,277

Non-current Assets 8,860 9,184

Total Assets 14,748 14,461

Current Liabilities 8,018 7,544

Non-current Liabilities 6,568 6,594

Total Liabilities 14,587 14,138

Equity 162 323

Total Liabilities and Equity 14,748 14,461

30

Gross Profit & EBITDA – 2019

(TL million)

Without IFRS 16 With IFRS 16

2018 2019 2019

Gross Profit 4,881 6,121 6,205

Margin 26.1% 26.4% 26.8%

EBITDA 1,217 1,531 2,236

Margin 6.5% 6.6% 9.6%

31

Ownership Structure

Direct Shareholding Structure Indirect Shareholding Structure

(*): Migros purchased its own shares due to the merger in 2018 in accordance with relevant CMB legislation

Note: Anadolu Group maintains its 50% stake in Migros

Kenan InvestmentsS.A.

11.77%

MH Perakendecilik ve Ticaret A.Ş.

49.18%

Free Float

37.41%

Migros Ticaret

A.Ş.

AG Anadolu GrubuHolding A.Ş.

100.00%

Migros Ticaret A.Ş.*

1.64%

BC Partners

& related funds AG Anadolu Grubu Holding A.Ş.

50.00%

Free Float

38.04%

Migros Ticaret A.Ş.

BC Partners

& related funds

11.96%

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